TORONTO – Rogers blamed “highly competitive markets” for first quarter declines in both revenue and profits.

Consolidated financial results for the three months ended March 31, 2012 saw revenue dip 1% to $2.95 billion from $2.99 billion in same period last year, while adjusted profits fell 16% to $356 million from $423 million.

Despite a 16% increase in wireless data revenue and the second highest number of smart phone activations in any quarter in its history, Rogers Wireless network revenue was virtually flat as customers opted for cheaper “entry level” data pricing plans and new outbound data roaming packages.

Wireless activated and upgraded approximately 642,000 smart phones this quarter, predominantly iPhone, BlackBerry and Android devices, of which approximately 34% were for new subscribers.  This means that smart phone subscribers now represent 60% of the company’s overall postpaid subscriber base, up from 45% in the same period last year, while wireless data revenue now comprises 39% of Wireless network revenue, up from 34%.

The division recorded an operating profit of $717 million, down 9% from $789 million year-over-year.

Rogers Cable saw its operating profit plunge 10% to $354 million from $392 million in 2011 which it attributed to “heightened competitive activity principally related to the widened availability of aggressively priced IPTV offerings and basic cable subscriber losses”.

The division ended the period with 2.23 million total cable subscribers (down approximately 7,000 from the same period last year), 1.78 million digital cable customers, 1.81 million Internet customers, and 1 million cable telephony lines.

Rogers Media reported a 4% increase in operating revenue which it said was mainly the result of an increase in subscriber fees at Sportsnet.  However, a weaker than expected ad market suppressed growth and contributed to the division’s $21 million operating loss.

"Despite highly competitive markets, particularly impacting both the wireless and cable portions of our business, we continued to leverage our technology leadership to deliver new and innovative products and services while at the same time taking decisive action during the quarter to drive operational efficiencies", said president and CEO Nadir Mohamed, in a statement.   

www.rogers.com

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